Does BioCryst Pharmaceuticals Inc’s (NASDAQ:BCRX) Earnings Growth Make It An Outperformer?
Examining BioCryst Pharmaceuticals Inc’s (NASDAQ:BCRX) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess BCRX’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. View our latest analysis for BioCryst Pharmaceuticals
How Did BCRX’s Recent Performance Stack Up Against Its Past?
I prefer to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to analyze various companies in a uniform manner using the most relevant data points. For BioCryst Pharmaceuticals, its most recent trailing-twelve-month earnings is -US$50.74M, which compared to last year’s figure, has become less negative. Given that these figures may be fairly short-term, I have determined an annualized five-year figure for BioCryst Pharmaceuticals’s earnings, which stands at -US$45.63M. This shows that, BioCryst Pharmaceuticals has historically performed better than recently, though it seems like earnings are now heading back in the right direction again.
We can further examine BioCryst Pharmaceuticals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade BioCryst Pharmaceuticals’s top-line has grown by a mere 2.72%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Viewing growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 13.11% over the previous twelve months, and 19.44% over the past half a decade. This means though BioCryst Pharmaceuticals is presently loss-making, it may have gained from industry tailwinds, moving earnings in the right direction.
What does this mean?
BioCryst Pharmaceuticals’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will happen in the future and when. The most insightful step is to assess company-specific issues BioCryst Pharmaceuticals may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research BioCryst Pharmaceuticals to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
1. Future Outlook: What are well-informed industry analysts predicting for BCRX’s future growth? Take a look at this free research report of analyst consensus for BCRX’s outlook.
2. Financial Health: Is BCRX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
